NHC Foods Ltd, a company specializing in the export of a wide range of food products, has opened its Rs. 47.42 crore rights issue for subscription. The rights issue, attractively priced at Rs. 1 per share, is a significant discount compared to the current market price of Rs. 2.76 per share, as of December 6, 2024. The offer will close on December 18, 2024.
Shareholders are entitled to subscribe to the issue at a ratio of 4:1, meaning they can purchase four new shares for every existing share held on the record date of November 26, 2024. Investors can also buy NHC Rights Entitlements from the BSE at the same price. The last date for on-market renunciation of these entitlements is December 12, 2024.
In its recent performance report, NHC Foods indicated a net profit of Rs. 4.05 crore for the first half of FY25, up from Rs. 2.35 crore for the entire fiscal year FY24. The company’s revenues for H1FY25 reached Rs. 140.67 crore, compared to Rs. 211.30 crore for FY24.
The funds raised from the rights issue are earmarked for various purposes, including Rs. 25 crore for working capital requirements, Rs. 15 crore for repaying secured loans, and Rs. 7 crore for general corporate purposes.